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Microsoft leaves PC gaming because they can't have the total control they have on the XBox.

Total control over hardware (20GB harddrives for 100 Euro/$130 , HDMI cable for 50 Euro/$65 in Europe).
The XBox360 itself is a piece of crap.

Total control over software (region-locked demos and software, DLC)

Total control over online gaming (fees apply)

They know what you've bought, when you are online, what you have downloaded.

Total control over anything.

Microsoft's old dream fulfilled.